According to a recent report by Reown, the on-chain ecosystem is maturing, and users are expanding their participation beyond trading activities. Many believe that payments and artificial intelligence (AI) will play a crucial role in driving widespread adoption of on-chain technology.
Despite optimism about the future of cryptocurrencies, issues such as fees, security, and interoperability remain.
The Future of Cryptocurrency Adoption
Reown shared a report titled "The State of On-Chain UX" with Beincrypto. The report is based on a survey of 1,038 active cryptocurrency users in the United States and the United Kingdom from February 19 to February 26, 2025.
According to the survey results, 37% of users believe that payments, including stablecoins and transfers, will drive mass adoption. The report also mentions that stablecoin usage has increased from 20% last year to 37% this year.
Cryptocurrency wallet usage is also increasing. Reown observed that the average number of wallets has increased by 1.27 times in all regions in 2024.
Additionally, 54% of users are making payments with cryptocurrencies, suggesting an increase in real-world usage.
"For cryptocurrency payments to truly reach the mainstream, they must align with the ease of traditional fintech experiences. Users should be able to transact easily without needing to understand blockchain mechanisms." – Mirna Barca, Payment Product Manager at Reown
AI is considered another key driver, with 35% of users identifying it as a primary catalyst for adoption. While AI's potential is acknowledged, there is also skepticism about blockchain's role in AI development.
Only 29% believe the two technologies will complement each other, and just 18% think cryptocurrencies will drive AI advancement.
"While trading currently dominates user activity, payments and AI are the two themes that users feel will play a larger role at a larger scale. This does not align with users believing that the primary services they currently access will drive long-term value." – Report
Regulatory developments and tokenization are also seen as the next areas that can contribute to mass adoption, with 26% of users identifying each as key factors. Cryptocurrency regulation took center stage under President Donald Trump's administration.
Immediately after Trump's inauguration, the SEC established a cryptocurrency task force to create a clear regulatory framework for digital assets. In fact, the new SEC Chairman, Paul Atkins, emphasized the importance of cryptocurrency regulation, calling it a 'top priority'.
This focus has significantly contributed to industry optimism, as user data confirms. 86% of users believe it will drive mainstream adoption, while 14% think it will hinder innovation.
"We are in the final stage of regulatory uncertainty in the United States. In Europe, MiCA is finally taking shape, but the lack of precedent has made innovators speculate, just like in the US. The industry is on the threshold of regulatory clarity but has not yet reached it." – Marco Santori, Director of the Wallet Connect Foundation
Barriers to Cryptocurrency Popularization?
However, before mainstream adoption can occur, users believe several areas need improvement. Better security is the most critical, with 33% of users seeing it as a crucial factor for widespread adoption. Additionally, 25% of users emphasized privacy and data protection standards.
Trust in on-chain security has significantly increased, with 69% of users feeling safe, up from 50.5% last year. However, phishing attacks have also increased. The number of phishing attacks reported by users rose from 14.4% to 21%.
"Phishing attacks are increasing, which is a problem. However, security UX has not yet reached the necessary level. Making transaction signatures clearer and building fraud prevention can help users feel more in control." – Jess Holgrove, CEO of Reown
Notably, 44% of users are using multiple wallets for security reasons, up from 32.8% in 2024. Additionally, 18% of users cite security issues like hacking and fraud as barriers to on-chain participation.
Along with security issues, high fees deter 39% of users from deeper participation. Meanwhile, 30% believe lower fees will encourage more participation.
Particularly, users emphasize the need for interoperability, with 47% considering it very important. Additionally, 18% mention the lack of interoperability as a barrier. Nevertheless, only 14% list it as one of the key issues to be resolved.
Therefore, the report notes that developers should focus on real-world use cases to ensure a smooth, secure, and cost-efficient user experience. It also highlights the gap between user expectations centered on payment and social media apps and current behavior still focused on trading.
"Understanding and addressing this dynamic will be crucial to achieving true mainstream adoption," the report mentioned.
67% of survey participants are optimistic about cryptocurrency development, and the on-chain ecosystem is ready to grow. However, addressing security, fees, and interoperability is essential to fully realize its potential and drive the next wave of mainstream participation.
